Calling Australia Home the Characteristics and Contributions of Australian Migrants

Home , Australians

Calling Australia home The characteristics and contributions of Australian migrants

AMP.NATSEM Income and Wealth Report ISSUE 27 - NOVEMBER 2010 CONTENTS

Foreword 1

Introduction 2

A nation of migrants 3

Australian immigration past and present 4

Where do our migrants come from? 5

Australian migrants today 8

Migrants at work 14

Migrants and money 21

Migrants and wealth 22

Social participation and subjective wellbeing 25

Conclusion 31

References 32

Technical notes 33 Foreword

Australia is one of the most multicultural nations in the assets. This may be due to the fact that migrants live in world. Migrants have come here in search of a better life, urban areas where property prices are higher. Meanwhile and in doing so, have fundamentally shaped our culture non-migrant households take the lead in superannuation and our economy. savings and investments, possibly because they may have We are a nation of migrants - a quarter of Australia’s been able to accumulate superannuation and investments population was born overseas, one of the highest over a larger period of time. proportions among all OECD countries. And in 2008 alone Turning to a topic of considerable debate, asylum seekers it accounted for 65 per cent of our population growth. and immigration are two issues which are too often So who exactly is a migrant? Where do our migrants come confused. The report notes that asylum seekers make up from? How have they contributed to the economic growth only a very small proportion of people seeking to settle in of the country? Are many of us, in some way, migrants and Australia. Our humanitarian migration program makes what role will migration play in the future? up about 7 per cent of our total migrant intake. Asylum seekers make up around one-fifth or less of this group. This issue of the AMP.NATSEM report, Calling Australia Home, explores the characteristics and contributions of With more and more baby boomers retiring and exiting Australia’s overseas born population, examining aspects of the workforce, the pool of Australia’s skilled workers is the migrant experience including education, work, wealth declining. So rather than making migration a main focus, and wellbeing. it is important for Australia to look at all components of this debate and start planning for the future. Major shifts in Australia’s immigration policy over the years have resulted in a rich and culturally diverse nation. The fact is that along with an ageing population comes The advent of World War II signalled the need to defend fewer workers, more expensive healthcare and fewer tax the country and attract skilled workers, resulting in an payers to fund these costs. With a growing population, influx of immigrants from Europe. The 70s and 80s saw which is inevitable, comes a need for new infrastructure. multiculturalism become a focus with the arrival of Migrants should be seen as a component of future immigrants from South-East Asia. So if we look at the economic growth - the skilled workers and tax payers who fabric of Australian society, this country has most definitely will contribute to funding much needed projects. benefited from the waves of migration. Our history shows that Australia has evolved and grown In the last 10 years or so, the emphasis has been on skilled due to the significant changes to migration. The real migration, with the need for immigrants to contribute question now is can Australia adapt to the challenges to the labour force driven by concerns about the ageing posed by population growth and an ageing population? population and skills shortage. Interestingly since 1997 Migrants have made a significant contribution to the migrants under the skill visa category have overtaken those diversity and productivity of Australia. In fact we are under the family visa category. a nation built from the labour, skills and traditions of And this previously led to heightened efforts to attract migrants. It is embedded in our history, has significantly overseas students to Australia. Levels of education among contributed to the country’s economic wellbeing and recent migrants tend to match or exceed those of the culture, and undoubtedly migration will play an important Australian-born population. role in shaping Australia’s long-term future. It’s not surprising that migrants in Australia are predominantly of prime working age, with their high level of participation in the labour market one key indicator of their successful integration and contribution to the economy. However, are we fully utilising their skills? When it comes to migrants who were born in non-English speaking countries, apparently not always. Despite a higher proportion having Craig Meller tertiary qualifications, 40 per cent of these highly educated Managing Director migrants are working in low or medium skilled jobs. So is AMP Financial Services there a disparity with what migrants are qualified to do and what they are actually doing? Looking at money, the report also found that migrants are not far behind in terms of wealth and are ahead of their Australian-born counterparts in terms of property-related

1 Introduction

“There can be few people in either industrial sustainable? How should Australia respond to asylum or less developed countries today who do seekers? What is the right way for Australia to manage and regulate policies around migrant intake targeting and not have personal experience of migration citizenship? Debates around these questions demonstrate and its effects” (Castles and Miller 2009, that immigration continues to be a contested area of social page 7). policy, and an ongoing issue of significance. Against the background of the importance of immigration This statement is as true of Australia as of any country in to Australia, the level of interest in this topic and the the world. While Indigenous Australians have lived in this changing profile of Australia’s migrant intake, this issue of continent for many thousands of years, other Australians, the AMP.NATSEM Income and Wealth Report examines the to a greater or lesser extent, are recent arrivals. characteristics and experiences of Australia’s overseas-born Australia’s development as a nation has both been population. We include in our migrant population both influenced by, and in turn has influenced, many those who came to Australia as children and those who generations of migrants. We ourselves have either arrived as adults. experienced arriving here from somewhere else, or have Australia’s migrants are an incredibly varied group, and we heard of our parents’ or grandparents’ immigration organise our analysis of data in this report in ways that try experiences, or we live, work, play sport or maybe go to and take this into account, and to explore these differences school with those who have recently made Australia their further. In most of our analysis we differentiate migrants home. into two groups. First, migrants who were born in the main Australia’s recent history and current landscape is very English speaking countries - Canada, New Zealand, Ireland, much one of migration. Our growing economy has been the United Kingdom, United States and South Africa - who associated with the need to acquire a bigger skilled labour we refer to in this report as “Born in MESC” and second, force and this is a major reason Australia has welcomed a migrants who were born in non-main English speaking large number of migrants each year. Workers from overseas countries, who we will refer to as “Born in non-MESC”. identify Australia as a land of opportunity. Also, where possible, we divide our data up by gender Immigration is also a topic of considerable public and and age group. We look at a wide range of issues related political discussion: How much immigration is good to Australia’s overseas born population, with a particular for Australia? Are current levels of population growth focus on work, wealth and wellbeing.

2 A nation of migrants

A quarter of Australia’s population was born OECD countries sitting at only 11 per cent. Our immigrant overseas population is not quite double that of the United States, and more than twice that of the United Kingdom. Today, we are one of the world’s most multicultural Fertility and immigration are the sources of our population countries. The estimated resident population of Australia in growth. Over the decade, between 1998 and 2008, the 2008 was 21.4 million people with more than one quarter number of overseas-born residents has increased at a (5.5 million people) being born overseas (ABS 2009b). greater rate than the number of Australian-born residents. As shown in Figure 1, this is one of the highest proportions Immigration in 2008 is the highest contributor to overall of residents born overseas among all OECD countries, population growth, accounting for around 65 per cent of with the average proportion of overseas-born residents for growth.

Figure 1 - Overseas born residential population of OECD countries

35 36

25 25 25 t 20 22

er cen 20 P

15 16 14 14 13 13 13 13 10 11 11 10 10 9 7 7 8 5 6 6 4 4 3 0 0 2 2 y y g o* tes * ey alia age wa eece ance xic Italy * tugal eland Spain anada inland erland oland * Fr r ve ealand wede n Gr Ir stria Au rk Tu epubli c epublic F C P Nor S Me Belgium r Po Hungar str Au Denmark Germany* witz ak R S Netherlands mbour Lu xe New Z United Sta OE CD a Czech R Czech Slov United Kingdom

Countries Note: * Refers to countries where the 2007 figures were not available and the latest available data were then used. Source: OECD, International Migration Outlook, 2009.

3 Australian immigration past and present: 1901-2010

The nature of Australia’s immigrant population has evolved The 1970s and 1980s was also a time when multiculturalism and changed over many years, partly in response to internal became a strong focus of policy, emphasising the benefits of policy, as well as being influenced by external events and supporting cultural diversity and identity, while maintaining forces, and shifts in attitudes, beliefs and the political and social cohesion (Pietsch et al. 2010). This represented a move social environment. A brief history of Australia’s immigration away from an earlier emphasis on the need for migrants policy since the colonies came together as a Federation to assimilate to what was perceived as “mainstream” in 1901 helps us understand the background behind Australian culture. the diverse nature of Australia’s current overseas-born population1. Immigration in the 21st century (2000 - present) White Australia policy (1901-1945) Two of the major shifts in migration policy since the Although the White Australia policy predates Federation, and mid-1990s have been an increasing emphasis on skilled some of the elements survived until its official abolition in migration, particularly into high priority occupations and the 1970s, its importance is generally seen to centre around an increasing focus on temporary migration, often as a the years from Federation to the end of World War II. The precursor to permanent settlement. 1901 Immigration Restriction Act was aimed at excluding non-white migrants (and was sometimes used to exclude The increasing emphasis on immigrants’ contribution to the non-British migrants), and did so by requiring migrants to labour force has been driven by concerns about population pass a dictation test which could be set in any language ageing and skills shortages. This focus has included chosen by a customs officer. This period thus saw the arrival increasing efforts to attract overseas students to Australia, of many British migrants, so by the end of World War II a very and initiatives to encourage these students to permanently large majority of Australia’s foreign-born population came settle here after finishing their studies. In 2006-2007 there from Great Britain and Ireland. were 22,858 former student visa holders who converted into permanent residency, with slightly fewer (21,421) in Post Second World War migration 2007-2008 (DIAC 2008; DIAC 2009a cited in ABS 2009a). These figures represented around one-fifth of the total (1946-1965) additional skilled migration in each of the respective years. World War II resulted in a sense Australia needed to increase In more recent times, some changes to the skilled migration its population in order to be able to adequately defend the program have been announced, partly in response to country - the concept of “populate or perish”. Skill shortages concerns relating to the impact of the global financial crisis, were also a key issue during this period of migration, and and to issues related to unintended consequences of the attracting skilled workers was an important migration goal. strong link between study and permanent settlement. British settlers in particular were given special incentives Recent changes include more targeted priority occupations and privileges to migrate, but the post-war period also saw and an increased emphasis on employer-sponsored an influx of immigrants from across Europe, including large migration. numbers of displaced persons. This period saw much higher intakes of non-English speaking migrants than had been the case at any previous period in Australia’s history. Many of these post-war migrants played key roles in building infrastructure, including housing construction and the massive Snowy Mountains Hydro-Electric Scheme.

More diverse migration (1966-1999) Australian immigration policy became more open to non-European migration from around the mid-1960s onwards, but non-European migrants did not really start to arrive in large numbers until the early 1970s. There was a large influx of immigrants from South-East Asia during the 1970s (some arriving as “boat people”), a response to the upheavals and unrest taking place in countries such as Vietnam, Cambodia and Laos at this time.

1. Material in this section draws on a number of accounts of Australia’s immigration history, including work by Jupp (2001; 2007), Phillips (2005), Pietsch et al. (2010), Castles and Miller (2009) and Koleth (2010).

4 Where do our migrants come from?

Emphasis in recent years on skilled migration is reflected in Figure 2 shows that the numbers of migrants coming under Figure 2. Immigration flows in the past decade have been the skill visa category have overtaken those under the marked by an increasing number of migrants entering family visa category since 1997. In addition, the number Australia under the skilled migration program. In 2008, of migrants coming under the humanitarian program has around 115,000 permanent migrants came to Australia been relatively stagnant since 1988. In 2008, around 14,000 under the skill category visa, contributing around 62 per cent people came under the humanitarian program (including of total permanent migrants in 2008 (Figure 2). eligible asylum seekers), representing only 7 per cent of total overall immigration in that year.

Figure 2 - Trends in permanent immigration over time

Family Skill Humanitarian Program Special Eligibility Total

200

180

160

140

120

100

Thousands 80

0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Year

Note: This figure covers permanent visas only. 1988 refers to the financial year 1988-1989, and so on for all respective years. See technical notes for “Special Eligibility” migrants. Total is the summation of family, skill, special eligibility and humanitarian program and excluding immigrants from New Zealand. Source: Data prior to year 2000 for family, skill and special eligibility migrants are sourced from Phillips et al. (2010, Table 1, page 16), while data for year 2000 and above are sourced from DIAC, Population flows: Immigration aspects 2008-2009 Edition, 2010. Humanitarian program data are sourced from DIAC, Population flows: Immigration aspects 2008-09 Edition, 2010 (source data for Figure 4.1).

The changing patterns of Australian migration are also As indicated in Figure 3, of those who came to Australia reflected in the changing mix of countries from which during the White Australia policy period (and who are still our migrants have originated. If we look at Census data alive), 61 per cent were born in the main English-speaking about people born overseas based on their year of arrival countries (MESC), particularly the United Kingdom (UK) and in Australia, we can see how the ethnic mix of our migrant Ireland. The shift from British and Irish migrants to those population has changed during the four broad periods of born in other European countries during the post-World War migration described previously. II period is evident, with the proportion of migrants who arrived during this period and coming from MESC dropping substantially.

5 The period of more diverse migration from the mid-1960s was characterised by a large increase in migrants who came from Asia and other countries. Australia’s more recent migration profile, with its focus on skilled migration, is characterised by a substantial number of the immigrant population coming from Asian countries (43 per cent).

Figure 3 - Migrant population and year of arrival

100 6 4 Born in 14 15 4 other 90 8 55 countries 80 26 30 43 Born in 70 Asian countries 60 t 61 Born in 50 17 other er cen

P European 40 8 countries 38 39 30 34 Born in 20 MESC

0 1901-1945 1946-1965 1966-1999 2000-2006 Year of arrival

Note: MESC = Main English Speaking Countries. See technical notes for further information on data coverage and definitions. Source: ABS, Census TableBuilder, 2006 data.

However, it is interesting to note immigrants coming from MESC still form a substantial part of Australia’s overseas-born population. The latest data about the top 10 countries of birth of migrants (Table 1) show England and New Zealand still as the two major source countries of migrants to Australia over the past 10 years.

Table 1 - Top 10 Countries of Birth of Migrants

1996 2006 Top 10 Persons Percentage of Top 10 Persons Percentage of countries (thousands) all overseas countries (thousands) all overseas born born 1 England 872 22 England 857 19 2 New Zealand 291 8 New Zealand 390 9 3 Italy 238 6 China 207 5 4 Vietnam 151 4 Italy 199 5 5 Scotland 146 4 Vietnam 160 4 6 Greece 127 3 India 147 3 7 China 111 3 Scotland 130 3 8 Germany 110 3 Philippines 121 3 9 Philippines 93 2 Greece 110 3 10 Netherlands 88 2 Germany 107 2

Source: ABS, Perspectives on Migrants, 2007.

6 Most migrants, particularly those who have recently arrived with higher proportions of migrants being in the prime in Australia, migrate when they are young. Around 40 working age population. per cent of recent adult permanent migrants moved to Figure 4 shows around 50 per cent of people born overseas Australia when they were aged 25-34 years and 22 per cent are in the prime working age population of 25-54 years migrated when they were aged 35-44 years (ABS 2008b). compared with only 39 per cent of Australian-born. These This in turn contributes to the migrant population having large numbers provide some indication of the economic a different age profile than the Australian-born population, contribution which migrants make to Australia.

Figure 4 - Age profile

45 Born in Australia Born in MESC Born in non-MESC 40

35 38 35 30

t 25 25 26 er cen

P 20 20 19 15 18 15 15 15 10 13 11 11 11 9 5 7 6 5 0 0-14 15-24 25-34 35-54 55-64 65+ Age group (years)

Note: MESC= Main English Speaking Countries. See technical notes for further information on data coverage and definitions. Source: ABS, Census TableBuilder, 2006 data.

“Most migrants, particularly those who have recently arrived in Australia, migrate when they are young.”

7 Australian migrants today

Are most migrants married? for older migrants who were born in non-MESC compared with Australian-born people and MESC-born migrants. To Figure 5 shows the social marital status of people in some extent, these patterns may reflect cultural differences Australia, allowing us to look at both formal marriage and between these groups. de facto relationships. Migrants who were born in the main English speaking countries (MESC) are very similar in terms Looking at those people who are not married, we find of relationship status to the Australian-born population, broadly similar patterns for migrants and those born in with a relatively high rate of de facto relationships Australia, with proportions of not married people highest particularly for the younger age group of 25-34 years for all groups in the youngest and oldest age categories (20 per cent for people born in Australia and 26 per cent for shown in Figure 5. These results are not unexpected, as migrants born in MESC). they may represent cohorts at different phases of the life cycles: the younger group is likely to include a large number In contrast, the rate of de facto relationships is lowest for of not yet married people, while the older group will young migrants who were born in the non-main English include widowed women and men. speaking countries (non-MESC), at only 9 per cent. This is consistent with the higher rates of registered marriage

Figure 5 - Social marital status

Married De facto Not married

65+ 62 1 37 55-64 75 3 23 35-54 74 5 21 Born in non-MESC 25-34 51 9 40 ) 65+ 61 2 37 ears y 55-64 70 6 24

MESC 35-54 65 12 23 Born in

25-34 41 26 33 Age group ( group Age 65+ 57 1 42

55-64 69 5 26 alia

ustr 35-54 63 10 27 Born in A 25-34 41 20 39

0 10 20 30 40 50 60 70 80 90 100 Per cent

Note: MESC = Main English Speaking Countries. See technical notes for further information on data coverage and definitions. Source: ABS, Census TableBuilder, 2006 data.

8 An educated population Migrants who were born in non-MESC are highly skilled, especially for the younger population. A total of 46 per Given Australian immigration policy emphasises the cent of male non-MESC migrants aged 25-34 years have a need to address skills shortages, we might expect that bachelor degree or above, compared with only 20 per cent levels of education among migrants, at least more recent of Australian-born men in the same age group. Australian- migrants, will match or exceed those of the Australian- born men, however, have strong vocational qualifications born population. Considering we know educational profiles and a strong focus on vocational education is also evident differ for men and women, we have examined this data by in migrants who were born in MESC. gender for the prime working age population aged 25-54 years, and results are shown in Figure 6 (for men) and Figure 7 (for women).

Figure 6 - Educational attainment of men

100 No schooling 21 30 16 21 10 90 20 Year 11 22 80 21 and below 20 14 20 70 Year 12 or 12 requivalent 60 41 21

t 33 39 50 40 28 Certificate or diploma er cen P 40 46 Bachelor degree 30 and above 30 30 20 24 20 10 18

0 25-34 35-54 25-34 35-54 25-34 35-54 Born in Australia Born in MESC Born in non-MESC

Age group (years)

Note: MESC = Main English Speaking Countries. See technical notes for further information on data coverage and definitions. Source: ABS, Census TableBuilder, 2006 data.

“A total of 46 per cent of male non-MESC migrants aged 25-34 years have a bachelor degree or above, compared with only 20 per cent of Australian-born men in the same age group.”

9 Younger Australian women are generally better qualified than their male counterparts C( assells et al. 2009), but interestingly gender difference in qualifications for young non-MESC migrant men and women are negligible, with nearly half of both men and women having a tertiary qualification.

Figure 7 - Educational attainment of women

100 No schooling 20 41 15 31 90 11 26 Year 11 80 21 21 and below 22 70 Year 12 or 18 23 requivalent 60 19

t 26 13 50 29 Certificate or diploma er cen 26 P 40 25 47 21 Bachelor degree 37 30 and above 29 20 24 26 21 10

0 25-34 35-54 25-34 35-54 25-34 35-54 Born in Australia Born in MESC Born in non-MESC

Age group (years)

Note: MESC = Main English Speaking Countries. See technical notes for further information on data coverage and definitions. Source: ABS, Census TableBuilder, 2006 data.

10 Where do they live? Like other Australians, most migrants are urban dwellers, although they are somewhat more concentrated in the four largest capital cities than the native-born population. More than 60 per cent of migrants who were born in MESC live in the four capital cities of Sydney, Melbourne, Brisbane and Perth, with an even higher figure of 79 per cent for migrants who were born in non-MESC and only 49 per cent for people born in Australia (Table 2).

Table 2 - Place of residence

Place of residence Born in Australia (%) Born in MESC (%) Born in non-MESC (%) Sydney 17.7 19.3 36.0 NSW Balance 14.4 7.8 4.2 Melbourne 16.4 15.1 28.7 VIC Balance 8.0 4.0 2.4 Brisbane 9.0 11.7 6.9 QLD Balance 11.8 11.6 4.4 Adelaide 5.6 7.0 5.3 SA Balance 2.4 1.7 0.6 Perth 6.3 14.5 7.7 WA Balance 2.7 3.3 0.8 Greater Hobart 1.2 0.8 0.4 TAS Balance 1.7 1.0 0.3 NT/ACT 2.7 2.2 2.2 Total 100 100 100

Note: MESC = Main English Speaking Countries. See technical notes for further information on data coverage and definitions. Source: ABS, Census TableBuilder, 2006 data.

“Most migrants are urban dwellers, although they are somewhat more concentrated in the four largest capital cities than the native-born population.”

11 Diversity of language Migrants come to Australia from many countries. Thus, languages spoken at home by migrants are very diverse, with 49 per cent of all migrants speaking a language other than English at home. As shown in Figure 8, the top five languages other than English spoken at home are Mandarin, Cantonese, Italian, Arabic and Vietnamese which matches broadly with data shown earlier about Australian migrants’ top 10 countries of birth. Amongst these, the majority (at around 80 per cent) can also speak English well.

Figure 8 - Language spoken at home for migrants who do not speak English at home

9 8.7 8.8 8 8.3 7

6 t 6.1 6.2 5 5.4 er cen P 4 3.8 3 3.4 2.8 2

1 1.5 1.6 1.2 0.9 0 ee k abic ench Gr Ar Italian Fr agalog T Spanish tuguese German Japanes e Mandarin onese nt Ca Indonesian r Po etnamese Vi Language spoken

Source: ABS, Census TableBuilder, 2006 data.

“Languages spoken at home by migrants are very diverse, with 49% of all migrants speaking a language other than English at home.”

12 Migrants under humanitarian programs this group. For example, in 2008-2009, 19 per cent of all humanitarian visas granted in Australia were granted to As noted earlier, the arrival of asylum seekers by boat to “onshore” applicants (including those who arrived by boat Australia is a contentious issue, however, it is important or by plane). The vast majority of asylum seekers arriving to realise asylum seekers make up only a very small by boat have their refugee status confirmed, while those proportion of people seeking to settle in Australia. Asylum arriving by plane are much less likely to have their refugee seekers are seeking protection in the same way refugees status recognised (Phillips 2010). do (due to a well-founded fear of persecution in their own country), but asylum seekers have not yet had their refugee Among OECD countries, Australia is almost on par with status confirmed. the United States and Italy in terms of the proportion of refugees taken in, measured on a per capita basis. Australia’s humanitarian migration program, through Countries such as Sweden, the United Kingdom and which we accept refugees, makes up only around 7 per Canada receive substantially higher proportions of refugees cent of our total migrant intake (as shown earlier in Figure per ten thousand of population (Figure 9). 2), and asylum seekers, many of whom arrive by plane rather than boat, make up only around one-fifth or less of

Figure 9 - Ratio of refugees per 10,000 population in selected OECD countries

100

90 87 80 78 70 73

60 65 60 50 50 47 40 46 44 37 30 31 20 22 10 14 14 Number of refugees per 10 thousand population 10 4 9 9 8 6 2 2 2 1 1 0 y y y g ey tes ali a wa enia Italy eec e anc e eland oland anada inland erland rk Tu Fr ealand wede n P Gr Ir stria Au Iceland epubli c F C Nor S Belgium Slov Hungar str Au German Denmark witz S Netherlands mbour Lu xe New Z United Sta Czech R Czech United Kingdom Country

Note: The selected countries have been chosen from OECD countries which were in the top 100 largest recipients of refugees in 2009. Source: NATSEM calculations based on 2009 population data published in World Bank website (available at http://databank.worldbank.org/ddp/home.do) and refugee data published in UNHCR, 2009 Global Trends: Refugees, Asylum-seekers, Returnees, Internally Displaced and Stateless Persons, 2010.

The source countries of migrants coming to Australia For example Sudan, Afghanistan and Iraq were the top under the humanitarian program are, as would be three source countries of humanitarian program migrants expected, usually countries where war and unrest erupts. coming to Australia in 2006.

13 Migrants at work

Participation of migrants in the labour market is one Labour force participation rates indicator of migrants’ successful integration and contribution to the economy (DIAC 2009b). In this section, Looking first at men (Table 3), we can see participation we examine migrants’ labour market characteristics - how rates are broadly similar for men across the three different much they work, in what jobs and with what earnings. We migration categories, with male migrants born in the main also explore whether the skills and capacities migrants bring English speaking countries (MESC) having slightly higher with them to Australia are being fully utilised, and look at labour force participation rates than other groups, and some of the possible barriers to labour force participation. In non-MESC male migrants having slightly lower rates, most tables and figures in this section, we limit our sample although the magnitude of difference is very small. to those who are not full-time students. Differences in unemployment rates between the groups are evident, with relatively high unemployment rates for male non-MESC migrants likely reflecting labour market barriers experienced by this group.

Table 3 - Male labour force characteristics

Age Group Born in Australia Born in MESC Born in non-MESC (years) LFPR (%) Unemployment LFPR (%) Unemployment LFPR (%) Unemployment rate (%) rate (%) rate (%) 25-34 92.6 4.3 95.0 3.4 91.4 5.7 35-54 90.1 3.0 92.6 2.9 87.9 4.5 55-64 68.0 2.6 72.9 3.4 65.0 3.9

Note: MESC = Main English Speaking Countries. LFPR = labour force participation rate. Excluding full-time students. See technical notes for further information on data coverage and definitions. Source: ABS, Census TableBuilder, 2006 data.

The picture is consistent when female migrants are compared to 76 per cent for MESC women and 75 per examined, with the lowest labour force participation rate cent for Australian-born women. We also observe that the recorded for people who were born in non-MESC across all labour force participation rate for women is lower than men age groups (Table 4). This may be due to lower labour force across all age groups, as expected. As was the case for men, participation for married women with children in this group unemployment rates for non-MESC women are higher than than the two other groups. for other groups. Labour force participation for married women with one For both men and women, across all migration categories, to three children is 66 per cent for non-MESC women participation rates fall for people closer to retirement.

Table 4 - Female labour force characteristics

Age Group Born in Australia Born in MESC Born in non-MESC (years) LFPR (%) Unemployment LFPR (%) Unemployment LFPR (%) Unemployment rate (%) rate (%) rate (%) 25-34 75.8 3.2 77.6 3.2 68.4 5.4 35-54 78.0 2.8 79.4 3.1 67.3 4.4 55-64 50.0 1.4 52.7 1.9 39.5 2.0

14 How are migrants working? Figure 10 (for men) and Figure 11 (for women) show the division between full-time and part-time status of employed While the figures presented above suggest labour force persons in Australia. Full-time employment for the prime participation rates of migrants from non-main English working age population 25-54 years is closely comparable speaking countries are slightly lower than those for other across groups, with 89 per cent of employed Australian- Australians, especially for women, once we look at how born men working full-time, compared with 90 per cent of much work those who are participating are doing, a different male migrants who were born in MESC and 86 per cent for pattern emerges. migrant men from non-MESC. For those nearing retirement, migrant men aged 55- 64 years from both MESC and non-MESC were comparable in terms of their full-time work status to Australian-born men in this age group.

Figure 10 - Employment status of men

Full-time Part-time

Born in non-MESC 80 20

Born in MESC 80 20 55-64

Born in Australia 79 21

Born in non-MESC ) - Men 86 14 ears

y Born in MESC 90 10 35-54

Born in Australia 89 11

Age group ( group Age Born in non-MESC 86 14

Born in MESC 90 10 25-34 Born in Australia 89 11

0 10 20 30 40 50 60 70 80 90 100 Per cent

Note: The proportion of full-time employed and part-time employed is calculated as a percentage of total valid employed persons by excluding the “away from work” category. Away from work includes persons who stated they work but did not state the number of hours they work. MESC = Main English Speaking Countries. Excluding full-time students. See technical notes for further information on data coverage and definitions. Source: ABS, Census TableBuilder, 2006 data.

As expected, the proportion of women working part-time is This is particularly striking for the 35-54 year age group, in higher than men across all country of birth and age group which only 51 per cent of Australian-born women work categories. However, the proportion of female migrants full time, compared with 61 per cent of women born in born in non-MESC who work part-time is less than both the non-MESC. proportion of women born in MESC or in Australia. Reasons behind these differences are likely to be mixed, and Women who were born in Australia have the highest could reflect a combination of different factors: challenges proportion of part-time workers, particularly during the child faced by migrants including pressures to perform in the bearing and rearing period and when nearing retirement, labour market in order to remain competitive with native while women from non-MESC have slightly higher rates of Australian and MESC migrants; financial commitments full-time work than native-born Australians in all age groups associated with establishing a stable life in Australia (such (Figure 11). as buying a house) and possibly different attitudes towards maternal labour market participation.

15 Figure 11 - Employment status of women

Full-time Part-time

Born in non-MESC 52 48

Born in MESC 50 50 55-64

Born in Australia 49 51 omen

W Born in non-MESC 61 39 ) -

ears Born in MESC 54 46 y 35-54

Born in Australia 51 49

Born in non-MESC

Age group ( group Age 71 29

Born in MESC 70 30 25-34 Born in Australia 64 36

0 10 20 30 40 50 60 70 80 90 100 Per cent

What kind of jobs are migrants doing? compared with 39 per cent for migrants who were born in MESC and 38 per cent for migrants who were born in It is clear from Figure 12, that working in a highly skilled non-MESC. However, for the older age groups, this pattern occupation is more common for younger than for older changes, particularly for non-MESC migrants, and this latter migrants - reflecting the changes that have taken place in group has the highest proportion working in low skilled Australia’s migration program in recent years. In the 25-34 occupations across all age groups. year old age group, around 31 per cent of people who were born in Australia work in highly skilled occupations

“Working in a highly skilled occupation is more common for younger than for older migrants.”

16 Figure 12 - Distribution of occupations by country of birth

100 High skilled 31 39 38 33 37 30 34 34 27 occupations 90

80 Medium skilled occupations 70 27 25 30 Low skilled 60 26 23 26 t 27 21 27 occupations 50 er cen P 46 40 45 43 39 41 41 40 30 34 36

0 Born in Born in Born in Born in Born in Born in Born in Born in Born in Australia MESC non- Australia MESC non- Australia MESC non- MESC MESC MESC 25-34 35-54 55-64 Age group (years)

Differences between MESC and non-MESC migrants may We have a closer look at this issue here, examining issues simply reflect differences in the labour market attributes of around mismatches between qualification and occupation these two groups, but could also be interpreted as reflecting for the prime working age population, as well as measuring some type of reduced or limited opportunities for non-MESC underemployment (that is, the proportion of people who migrants. We explore this issue further in the next section. would like to work more hours than they do). As shown in Figure 13, education and occupation match Are migrants’ skills being fully utilised? much more closely for people born in Australia and migrants Our discussion earlier shows most migrants are highly from MESC than for non-MESC migrants. For those aged educated, however some of them also work in low skilled between 35 and 54 years, there is a stark contrast between occupations, and it might be that good qualifications do not non-MESC migrants and other groups. Only 19 per cent of translate as readily for some migrants into good jobs as is Australian-born tertiary educated people aged 35-54 years the case for Australian-born men and women. are working in low or medium-skilled occupations, and only 20 per cent of MESC migrants, compared with 38 per cent of Despite higher proportions of young non-MESC migrants non-MESC migrants. Similar differences are apparent for the having tertiary qualifications in this age group of 25-34 years 25-34 year age group. (46 per cent for men and 47 per cent for women, see Figure 6 and Figure 7 earlier), 40 per cent of them are working This supports the notion that labour market barriers only in either low or medium skilled occupation (Figure 13). may be experienced by this group of well-educated Therefore, there may be a mismatch happening in terms of migrants, perhaps including difficulties in having overseas what migrants are qualified to do and what kind of job they qualifications recognised, or in competing in the labour actually do. market with those who have a native English-speaking background.

17 Figure 13 - Occupation of tertiary educated population by country of birth

45 Medium skilled occupations 40 13 15 Low skilled 35 occupations 30

t 25 27 12 12

er cen 20 23 P 11 10 15

10 13 13 9 9 5

0 Born in Born in Born in Born in Born in Born in Australia MESC non-MESC Australia MESC non-MESC 25-34 35-54 Age group (years)

Note: MESC = Main English Speaking Countries. Excluding full-time students. See technical notes for further information about occupation classification based on skill levels. Highly skilled occupations are not shown in this figure. Therefore, the total does not add up to 100 per cent . Source: ABS, Census TableBuilder, 2006 data.

Difficulties in obtaining jobs suitable to qualifications this group; however, when breaking these figures down by may also be reflected in unemployment rates among the country of birth, we can see some differences (Figure 14). tertiary educated population. Unemployment rates are Those born in non-MESC countries have a substantially generally lower for people with tertiary education than for higher unemployment rate than other groups. others, reflecting the greater job opportunities available to

Figure 14 - Unemployment rate among tertiary educated population

5 5.2

4 4.1 t 3 er cen P

2 2.1 2.1

1.5 1.5 1

0 Born in Born in Born in Born in Born in Born in Australia MESC non-MESC Australia MESC non-MESC 25-34 35-54 Age group (years)

Note: MESC = Main English Speaking Countries. Excluding full-time students. See technical notes for further information on data coverage and definitions. Source: ABS, Census TableBuilder, 2006 data.

18 Underemployment (that is, those who are working and 25-54 years born in non-MESC countries are somewhat more would like to work more hours than they currently do) is also likely to be underemployed than other groups. an issue for migrants. Figure 15 shows that persons aged

Figure 15 - Underemployment among migrants

16 16 14

t 10 10 er cen

P 8

6 6 4

0 Born in Australia Born in MESC Born in non-MESC Country of birth

Note: MESC = Main English Speaking Countries. Excluding full-time students. Figures represent people who would prefer to work more hours as a percentage of totally employed people in age group covered (25-54 years). Source: NATSEM calculations from HILDA, Wave 8.

What might be some of the reasons behind the difficulties As expected, there is a higher rate of unemployment which non-MESC migrants, even those with tertiary amongst migrants from non-MESC who do not speak qualifications, have in obtaining employment suitable English well (not well or not at all). Unemployment rates to their qualifications, and getting as much work as they for migrants from non-MESC who do not speak English well want? One problem may relate to English proficiency. Figure are more than twice the unemployment rates for those 16 shows unemployment rates by English proficiency. who speak English well in each age group.

Figure 16 - Unemployment rate by English proficiency amongst migrants from non-MESC

20 Speak English well 18 18 16 Do not speak English well 14

12 13 t 10 er cen P 8

6 7

4 5

0 25-34 35-54 Age group (years)

Note: MESC = Main English Speaking Countries. Excluding full-time students and those who speak English only. See technical notes for further information on data coverage and definitions. Source: ABS, Census TableBuilder, 2006 data. 19 However, difficulties in getting work are not just related experiences/references (56 per cent), language difficulties to language. Figure 17 shows the main types of difficulties (35 per cent), lack of local contacts/network (29 per cent) experienced by recent migrants in finding their first and skill or qualifications are not recognised (21 per cent). job2. The top four reasons are lack of Australian work

Figure 17 - Types of difficulty finding the first job in Australia among recent migrants

56 50

40 t 30 35 er cen

P 29 20 21

10 11 10 10

0 5 5 s al all t tions ences or jobs Others er barriers ognised ficulties acancies network ef ec alian work estrictions work /a /r r Lack of local /r know how or not ’t tacts/ thnic or cultur in locality/line of E n co Don No jobs or v Language dif xperience sa type Vi Skills or qualifica e to apply f whe re str Lack of Au Type of barriers

Note: The total values of individual categories do not add up to 100 per cent as respondents are allowed to have multiple difficulties. This figure is based on data related to recent migrants who experienced difficulty finding their first job in Australia. Source: NATSEM calculations based on ABS Data cubes, Labour Force Status and Other Characteristics of Recent Migrants, Australia, Nov 2007.

2. Types of difficulty cover both migrants who were born in MESC or non-MESC. Recent migrants in this figure refer to migrants arriving in Australia after 1997 who were aged 15 years and above on arrival and had obtained permanent Australian resident status. It excludes those born in New Zealand, New Zealand citizens and those who had Australian citizenship prior to their arrival in Australia (ABS 2008b, page 4). 20 Migrants and money

Migrants and earnings: who earns the Interestingly, in the younger 25-34 year age group, most? migrants born in non-MESC with a bachelor degree and above are earning almost the same as the Australian-born An analysis of wages and salaries gives us some further population, while migrants born in MESC earn slightly less information about how well migrants are doing compared than the other two groups. with their Australian counterparts - are there gaps This may reflect to some extent the impact of skilled between the average wages of different groups of migrants migration from migrants born in non-MESC countries, and compared to Australian-born workers, or are earnings fairly these findings are also echoed when we look at earnings even across the different groups? by occupation, with younger non-MESC migrants working This section compares gross average weekly earnings for in highly-skilled jobs earning slightly more than their migrants and non-migrants who work full-time and are in Australian counterparts. In most other occupational and the working age population of 25-64 years. age categories, however, non-MESC migrants are earning Overall, our calculations show migrants born in MESC have less on average than Australian-born or MESC-born the highest earnings with $1,358 per week (figures not workers. shown), followed by people born in Australia ($1,266) and Our findings suggest that, for non-MESC migrants, it the lowest average of $1,145 for migrants born in is only those highly-skilled younger migrants whose non-MESC. wages match or exceed those of the Australian-born. The This may reflect some of the workforce experiences of this exception to this is older (35-54 years) non-MESC migrants group of migrants as discussed earlier - for example, we working in low-skilled occupations, whose wages are the know tertiary qualifications for non-MESC migrants do not same as those of Australian-born people working in these always appear to translate into highly skilled (and therefore occupations. highly paid) jobs. However, as discussed earlier, some of these non-MESC In terms of educational qualifications, and limiting workers are likely to be substantially over-qualified for our sample to those who are in the prime working age low-skilled work, and these mismatches between population only (25-54 years), we find gaps in wages qualifications and jobs are probably part of the reason for between non-MESC migrants and other groups exist for the substantial differences in pay between older non-MESC each of our education categories, but are largest (at migrants with tertiary qualifications and other similarly- 25 per cent) for non-MESC migrants aged 35-54 years qualified workers. with a certificate or diploma, who earn on average $956 per week, compared with $1,270 for their Australian-born counterparts (Table 5).

Table 5 - Gross average weekly earnings

Characteristics Gross average weekly earnings and wage ratio Born in Born in MESC Born in non-MESC Australia 25-34 35-54 25-34 years 35-54 years 25-34 years 35-54 years years years ($) ($) ($) Ratio to ($) Ratio to ($) Ratio to ($) Ratio to born in born in born in born in Australia Australia Australia Australia Educational Qualification Bachelor and above 1,367 1,663 1,229 0.90 1,813 1.09 1,354 0.99 1,424 0.86 Certificate/Diploma 1,112 1,270 1,193 1.07 1,267 1.00 912 0.82 956 0.75 Year 12 or below 1,097 1,045 963 0.88 1,162 1.11 896 0.82 965 0.92 Occupation Highly skilled 1,363 1,628 1,425 1.05 1,830 1.12 1,456 1.07 1,516 0.93 Medium skilled 1,173 1,263 966 0.82 1,315 1.04 973 0.83 965 0.76 Low skilled 1,019 997 937 0.92 1,043 1.05 835 0.82 992 1.00

Note: MESC = Main English Speaking Countries. Excluding missing values, self-employed, owner of own business, unpaid workers and full-time students. Source: NATSEM calculations from HILDA, Wave 8.

21 Migrants and wealth

In the previous section, we discussed differences in Table 6 reveals interesting differences in the wealth of earnings between migrants and non-migrants. However, migrant and non-migrant households. While non-migrant wealth - the money we have in savings, superannuation, households are wealthier than migrants in general, migrant housing equity and the like - is also an important marker of households are ahead of their Australian-born counterparts economic wellbeing. Wealth can provide a buffer against in terms of property-related assets and non-migrant short-term changes in income, and is a cornerstone of households take the lead in superannuation savings and economic security as we move into old age. investments. In this section, we examine the wealth of non-migrant Overall, non-migrant households with an average net and migrant households using the Household, Income worth of $387,200 are about five per cent richer than and Labour Dynamics in Australia (HILDA) Survey Wave 6. migrant households ($370,400). However, these overall A household was identified here as a migrant household similarities between the two groups hide differences in if the reference person or either member of a couple was the types of wealth held by migrant and non-migrant born overseas. If the reference persons and their spouse/ households. partner (if any) were born in Australia, the household was Households in which both the reference person and spouse considered a non-migrant household. It is important to were Australian-born own nearly 15 per cent more financial note in this section we have not differentiated between assets compared to those of migrant households ($143,600 MESC and non-MESC migrant households. compared with $124,600). This lead is related to a higher Wealth of non-migrant and migrant households is amount of superannuation savings and investments for compared by looking at net worth and its components. Net non-migrant households than for migrant households. worth is made up of the total value of household assets This may be due to the fact non-migrant households minus the total value of household debt. Assets may have would have been able to accumulate superannuation and financial and non-financial components. Financial assets investments earlier than many migrant households. 3 include superannuation of retired and non-retired persons In contrast, migrant households appear to be somewhat in the household, share portfolios, cash, trust funds and wealthier than non-migrant households in terms of bank accounts. non-financial assets ($308,700 compared with $298,700). Non-financial assets include the family home and other This difference is due to migrant households owning larger property, the net value of a business, collectibles and other property assets compared with their Australian-born assets. Total debt is made up of the debts associated with counterparts ($262,700 compared with $250,800). property, credit cards, HECS and other types of debt (eg This could relate in part to the fact more migrant personal loans). The wealth data are presented as average households (75 per cent) than non-migrant households dollar values per adult in the household. Group and mixed (58 per cent) live in major cities, where properties are households are excluded. more expensive. In keeping with this tendency, migrant households tend to have a nearly 19 per cent higher level Migrants have different wealth portfolios of property debt than do non-migrant households ($56,000 As shown in Table 6, all households included in the analysis compared with $47,000). have a net worth of over $381,000 per adult on average. But other debt such as credit card and HECS, though far These households own assets valued at around $442,000 lower than property debt, tends to be higher for Australian- and an average household debt of around $63,000 per born households than for migrant households. adult. Financial assets, averaging around $137,000, are dominated by superannuation savings of just over $79,000. Non-financial assets ($302,100) constitute the major slice of assets and over 80 per cent of these assets represent real estate. This is also reflected in the debt pattern, of which the major component is related to property debt.

3. Superannuation of non-retired persons is an approximate value of all their superannuation funds together if they were able to retire or resign today.

22 Table 6 - Average wealth per adult: Non-migrant and migrant households

All HH ($) Non-migrant HH ($) Migrant HH ($) Ratio Net Worth 381,400 387,200 370,400 1.05 Total Assets 441,600 442,400 440,100 1.01 Financial Assets 137,100 143,600 124,600 1.15 Superannuation 79,400 84,300 70,000 1.20 Investments 39,300 41,200 35,700 1.15 Bank accounts 16,000 15,500 16,900 0.92 Non-Financial assets 302,100 298,700 308,700 0.97 Property value 254,900 250,800 262,700 0.95 other non-financial assets 34,300 34,700 33,500 1.04 Total Debt 63,300 60,800 68,200 0.89 Property debt 50,200 47,100 56,000 0.84 Other debt 7,500 7,900 6,800 1.16

Note: Ratio refers to ratio of wealth of non-migrant to migrant households. A ratio greater than one indicates non-migrant households have more wealth (or debt). HH = households. Values within individual categories may not add up to the total value due to different missing values in each variable. See technical notes for further information on data coverage and definitions. Source: NATSEM calculations from HILDA, Wave 6.

Wealth by household type Age differences seem to be a major factor in this instance: migrant as well as non-migrant couple-only households Table 7 compares the major wealth portfolios of tend to be older than other household types, with reference non-migrant and migrant households by selected persons being aged 56 years on average. In contrast, couple household types. Non-migrant households are wealthier with children households are, as would be expected, much than migrant households across all the household types younger with reference persons aged around 42 to 44 years examined here, except for lone male households in which on average. migrant households perform better across all asset classes. Lone parent households, mostly headed by women, are the This result may be related to the very different educational poorest types of households and the relative gap between profile (and thus potential earning capacity) of lone male migrant and non-migrant households is the widest in this migrants compared to unmarried Australian-born men - category. Migrant lone parent households, with an average 35 per cent of lone male migrants have a bachelor degree net worth of $135,300, register as the least wealthy of all or higher compared to only 14 per cent of non-migrant the household types shown in Table 7. lone males. Australian-born couple only households are the wealthiest of all household types examined here, with a net worth of $568,700. Compared to them, couple-only migrant households held $73,700 less net worth on average. But these couple-only migrant households are not only ahead of other migrant households (except lone male households), but are also wealthier than other types of non-migrant households.

23 Table 7 - Average wealth per adult by household type: Non-migrant and migrant households

Household type Net Worth Superannuation Other Property Other non- Total debt ($) ($) ($) financial value ($) financial assets ($) assets ($) Couple only Non-migrant HH 568,700 136,100 99,600 319,800 40,500 58,200 Migrant HH 495,000 107,800 89,600 307,800 26,900 54,400 Couple with children Non-migrant HH 380,700 65,700 41,300 310,800 63,000 116,700 Migrant HH 367,200 56,200 34,300 298,300 69,300 115,200 Lone parent Non-migrant HH 200,100 34,200 52,600 170,500 4,300 59,600 Migrant HH 135,300 12,000 9,400 143,600 4,900 59,000 Lone male Non-migrant HH 383,800 91,600 59,000 216,000 33,000 49,900 Migrant HH 524,400 92,400 119,000 271,700 76,100 88,100 Lone female Non-migrant HH 457,000 92,400 61,000 291,600 25,100 38,400 Migrant HH 370,400 48,600 31,500 315,300 3,200 37,100

Note: HH = households. See technical notes for further information on data coverage and definitions. Source: NATSEM calculations from HILDA, Wave 6.

Recent migrants and long-term settlers Households of recent migrants are well behind those of Australian-born as well as long-term settlers in terms of As it takes time to accumulate wealth, we might expect major asset classes such as superannuation and real estate. migrants who have been in Australia for a longer time These recent migrants are a few years younger on average may be wealthier than those who are more recent arrivals. than long-term settlers as well as their Australian-born Looking at migrant households headed by persons aged peers, which may be contributing to the wealth gap we see, 35-54 years, Table 8 shows recent migrants who have and are also more highly educated, which may over time been in Australia for less than 15 years hold less wealth result in a narrowing of this gap. ($221,700) than long-term settlers who came 15 years ago or earlier ($332,900). Interestingly, long-term migrants have wealth portfolios comparable to Australian-born households, although the former group is slightly wealthier.

Table 8 - Average wealth per person by duration of arrival to Australia, aged 35-54 years

Net Worth Superannuation Other Property Other non- Total debt ($) ($) ($) financial value ($) financial assets ($) assets ($) Non-migrant HH 300,200 65,100 33,900 226,000 32,800 71,200 Migrant HH Recent migrants 221,700 42,900 33,200 194,600 18,500 81,300 Long-term settlers 332,900 57,800 38,500 255,200 44,900 89,900

Note: HH = households. See technical notes for further information about recent migrants and long-term settlers. Source: NATSEM calculations from HILDA, Wave 6. .

24 Social participation and subjective wellbeing

In the previous sections, we examined migrants’ economic this topic related to people aged 35-54 years and activities and economic contributions to Australia. We now 55-69 years (Figure 18). A somewhat bigger percentage focus on other aspects of their lives by looking at migrants’ of men than women across all country of birth groups are involvement in social activities, their satisfaction with their active members of such organisations, and these gender job opportunities here and their feeling about being part of differences are more marked for adults aged 35-54 years their local community. than for the older group. Australian-born men and women are more likely to have Gender differences in social participation an active membership of a sporting, hobby or community- and interaction based association compared to non-MESC migrants. Migrants from the main English speaking countries (MESC) Active membership of community groups is an important have patterns of organisational membership that closely dimension of community integration. In HILDA, individuals resemble those of native-born Australians. were asked whether they belong to sporting, hobby or community-based associations, and we present results on

Figure 18 - Active membership of sporting, hobby or community-based association

60 Born in Australia Born in MESC Born in non-MESC

50 49 40 45 44 45 42 40 t 35 30 34 33 er cen P 27 20 23 20

0 35-54 55-69 35-54 55-69 Men Women

Note: MESC = Main English Speaking Countries. See technical notes for further information on data coverage and definitions. Source: NATSEM calculation from HILDA, Wave 8.

25 Another way of gauging levels of community participation Gender differences are again evident across all migrant is to look at people’s involvement in volunteering or and age groups. But it is interesting to note unlike charity work as shown in Figure 19. Like organisational club/association memberships, which are generally membership, the tendency to be involved in volunteer more common among men, volunteering is usually more or charity work is more common among Australian-born common among women. In addition, while the rates of people than non-MESC born migrants. About 17 to volunteering by non-MESC men are substantially lower 23 per cent of Australian-born men and 23 to 24 per cent than those of their Australian-born counterparts, of Australian-born women compared to 9 to 12 per cent non-MESC women have rates of volunteering that are of non-MESC born men 17-18 per cent of non-MESC born closer to those of Australian-born women. women report involvement in volunteer or charity work. With regard to volunteering too, people born in MESC display behaviour more similar to Australian-born than non-MESC born people.

Figure 19 - Involvement in volunteering or charity work

30 Born in Australia Born in MESC Born in non-MESC

25 27 25 24 23 23 20 20 t 18 15 17 17 er cen P 13 10 12 9 5

0 35-54 55-69 35-54 55-69 Men Women

Note: MESC = Main English Speaking Countries. See technical notes for further information on data coverage and definitions. Source: NATSEM calculation from HILDA, Wave 8.

26 Job satisfaction two-thirds of non-MESC women aged 25-34 years, however, are satisfied with their employment opportunities. In this subsection, we look at people’s feeling of satisfaction with regard to their current jobs and job opportunities. Men aged 35-54 years from non-MESC have slightly higher Responses were solicited on a scale of 0 (totally dissatisfied) satisfaction with employment opportunities than their to 10 (totally satisfied). For the purpose of this report, we Australian-born and MESC counterparts. Satisfaction recoded them as follows: 7-10 as “satisfied”, 4-6 as “neither with employment opportunities tends generally to slide satisfied nor dissatisfied”, and 0-3 as “dissatisfied”. with age for Australian-born and non-MESC individuals (although interestingly not for MESC migrants). Men The image of Australia as a land of opportunity is captured aged 55-69 years in all country of birth categories express in the data presented in Figure 20 showing a very large much less satisfaction with their work opportunities than majority of people are satisfied with their employment younger men, and migrant non-MESC women aged opportunities, especially in the younger age groups. Fairly 55-69 years have the lowest satisfaction of all groups, consistent levels of satisfaction are expressed by young with only just over half being satisfied with their men aged 25-34 years old across the country of birth employment opportunities. groups, with slightly lower levels of satisfaction among the migrant than the non-migrant groups. Less than

Figure 20 - Satisfied with employment opportunities

90 Born in Australia Born in MESC Born in non-MESC 80 80 78 80 79 79 76 70 73 74 73 75 68 68 67 60 66 65 62 63

t 50 51

er cen 40 P

0 25-34 years 35-54 years 55-69 years 25-34 years 35-54 years 55-69 years Men Women

Note: MESC = Main English Speaking Countries. See technical notes for further information on data coverage and definitions. Source: NATSEM calculations from HILDA, Wave 8.

27 How do people feel about the job they are currently job satisfaction, while still high, is at its lowest in this age in? Focusing just on people who are in work, Figure 21 group). Migrants and non-migrants expressed different shows the percentage of employed people who reported patterns of job satisfaction across age cohorts. For example, being satisfied with their jobs. These findings contrast in among younger workers aged 25-34 years, more Australian interesting ways with those about satisfaction with job born people (83 per cent of men and 84 per cent of women) opportunities. are satisfied with their job compared to their migrant While satisfaction with job opportunities tended to counterparts, especially non-MESC migrants, among diminish with age, satisfaction with one’s current job whom only 72 per cent of men and 75 per cent of women is higher for the 55-69 year old group than for younger reported being satisfied with their current job. groups in all cases except for non-MESC women (for whom

Figure 21 - Overall job satisfaction

Born in Australia Born in MESC Born in non-MESC 100

90 94 93 89 90 80 83 85 86 85 83 82 84 84 84 78 70 75 75 72 74 60 t 50 er cen P 40

0 25-34 years 35-54 years 55-69 years 25-34 years 35-54 years 55-69 years Men Women

Note: MESC = Main English Speaking Countries. See technical notes for further information on data coverage and definitions. Source: NATSEM calculation from HILDA, Wave 8.

“A very large majority of people are satisfied with their employment opportunities, especially in the younger age groups.”

28 Feeling part of the community When we focus only on those who express satisfaction about feeling part of their community, however, non-MESC What can HILDA data tell us about the extent to which migrants are behind Australian-born people, with the migrants feel they are part of their local community in gap higher for women than for men. Nearly two-thirds of comparison to Australian-born people? While the survey Australian-born women are satisfied with their feeling of question asks respondents to focus on their local area being part of their local community compared to just over rather than think about their sense of being part of the a half of women born in non-MESC. Women from MESC broader Australian society, responses do give us some express feelings broadly similar to Australian-born women. sense of the extent to which migrants may feel at home in the community. These results are presented in Figure Overall, we can tentatively conclude while most migrants 22, and perhaps the most important thing to note about have positive feelings about being part of their local this data is only a small minority of both Australian-born community, many of them (in common with relatively large and migrant individuals are “dissatisfied” with their sense proportions of Australian-born people) express somewhat of being part of the local community. Most migrants and subdued feelings regarding this concept. non-migrants do feel satisfied with the extent to which they feel part of their local community and roughly around one-third are neither satisfied nor dissatisfied.

Figure 22 - Feeling part of your local community

Satisfied Neither satisfied or dissatisfied Dissatisfied

Born in non-MESC 51 39 10

Born in MESC 60 31 9 omen W Born in Australia 64 30 6

Born in non-MESC 56 37 7

Men Born in MESC 55 35 10

Born in Australia 60 32 8

0 10 20 30 40 50 60 70 80 90 100 Per cent

Note: MESC = Main English Speaking Countries. See technical notes for further information on data coverage and definitions. Source: NATSEM calculations from HILDA, Wave 8.

29 30 Conclusion

In many ways, the lives of people who arrive in Australia How do migrants do in terms of money? Having come from other countries are similar to those of other to Australia in search of opportunity, do these hopes Australians. We share many characteristics: Australian- translate into financial wellbeing? The answer seems to be born and migrant alike are often partnered, large numbers “sometimes”. Younger migrants working in highly-skilled of us are engaged in full-time work, with women in both occupations, for example, earn as much or more than their groups more likely to work part-time than men and work Australian counterparts, but Australian-born people with patterns across the life course broadly similar; and in many vocational qualifications generally do better than ways our satisfaction with aspects of our lives - whether similarly-skilled migrants from non-English speaking that life is being lived in the place we have always been, countries. In terms of wealth, we find that financial security or in the country we have moved to - is similar. Over and increases with age for both migrant and non-migrant again, we find that women (migrant or not) share broad households. Long-term migrants have wealth holdings that characteristics which differ from those of both migrant slightly surpass those of Australian-born households on and non-migrant men, and different age cohorts, whether average, but newer migrants lag substantially behind their native-born or not, have similarities. For example, we can native-born counterparts. see tertiary education is more common among younger We do see some differences in aspects of community than older cohorts of both the Australian and the participation and life satisfaction between migrants and overseas-born. non-migrants, but these are generally not of a very large However, differences are also present, and not just between magnitude and our analysis does not extend to all the migrants and Australian-born people, but within Australia’s ways in which participation and life satisfaction can play very diverse migrant population. These differences are not out. While we have not been able to explore the reasons surprising, given the huge number of countries of origin for these differences here, they are likely to be complex. from which Australia’s migrant population is drawn, as well They may be in part to do with the upheavals involved in as the major shifts in the focus of immigration over the last coming to another country, with the efforts migrants make hundred years or so. once arrived here to improve their economic situation Work is an important way for immigrant and (as evidenced through high rates of full-time work and non-immigrant alike to participate in Australian society. their capacity for wealth-building), with the difficulties We find large numbers of both groups are working, but faced by some migrants in finding work suitable to their people born overseas in non-English speaking countries qualifications, and possibly with the degree to which they appear to face some barriers to work: they are more likely feel welcomed and accepted into Australian society. to be experiencing unemployment than their Australian- Efforts to understand the migrant experience, and its born counterparts, and older migrants particularly are likely relationship to Australia’s economic wellbeing and culture to be working in low-skilled occupations. Migrants from of diversity, will continue to be an important focus of non-English speaking countries are also more likely to want enquiry as our newest generation of young migrants more work than they can get, and much bigger proportions continues to settle in this country. of these migrants with tertiary qualifications are working in low-skilled occupations than other Australians with similar educational achievements. Once migrants have work, though, they work a lot, with rates of full-time work as high or higher amongst migrants compared with Australian-born workers.

31 References

Australian Bureau of Statistics (ABS 2004), Australian Social Trends, 2004, ABS Cat No. 4102.0. Australian Bureau of Statistics (ABS 2006), ANZSCO - Australian and New Zealand Standard Classification of Occupations, First Edition, 2006, ABS Cat No. 1220.0. Australian Bureau of Statistics (ABS 2008a), Perspectives on Migrants 2007, ABS Cat No. 3416.0. Australian Bureau of Statistics (ABS 2008b), Labour Force Status and Other Characteristics of Recent Migrants, Australia Nov 2007, Table 8 and Table 12, data cube: Excel spreadsheet, ABS Cat No. 6250.0, viewed 19 August 2010. Australian Bureau of Statistics (ABS 2009a), Perspectives on Migrants 2009, ABS Cat No. 3416.0. Australian Bureau of Statistics (ABS 2009b), Migration, Australia, 2007-08, ABS Cat No. 3412.0. Australian Bureau of Statistics (ABS 2009c), Census TableBuilder, 2006, ABS Cat No. 2065.0. Cassells, R., Miranti, R., Nepal, B. and Tanton, R., (2009), “She works hard for the money: Australian women and the gender divide”, AMP.NATSEM Income and Wealth Report Issue 22, April. Castles, S. and Miller, M. J. (2009), The Age of Migration: International Population Movements in the Modern World, 4th edition, Palgrave MacMillan, New York. Department of Immigration and Citizenship (DIAC 2008), Population Flows - Immigration Aspects 2006-07 Edition, DIAC, Canberra. Department of Immigration and Citizenship (DIAC 2009a), Population Flows - Immigration Aspects 2007-08 Edition, DIAC, Canberra. Department of Immigration and Citizenship (DIAC 2009b), Fact Sheet 14 - Migrant Labour Market Outcomes, DIAC Canberra. Department of Immigration and Citizenship (DIAC 2010), Population Flows - Immigration Aspects 2008-09 Edition, DIAC, Canberra. Department of Immigration and Citizenship (DIAC), Immigration Update, various issues, DIAC, Canberra. Jupp, J. (ed) (2001), The Australian People: An Encyclopedia of the Nation, Its People and Their Origins, Cambridge University Press, Cambridge, United Kingdom. Jupp, J. (2007), From White Australia to Woomera: The Story of Australian Immigration, 2nd edition, Cambridge University Press, Cambridge, United Kingdom. Koleth, E. (2010), Overseas Students: Immigration Policy Changes 1997 - May 2010. Parliamentary Library, Department of Parliamentary Services, Parliament of Australia, Canberra. Melbourne Institute of Applied Economics and Social Research (2008), Household, Income and Labour Dynamics in Australia (HILDA) Survey Wave 6. Melbourne Institute of Applied Economics and Social Research (2010), Household, Income and Labour Dynamics in Australia (HILDA) Survey Wave 8. Organisation for Economic Cooperation and Development (OECD 2009), International Migration Outlook 2009, available at http://www.oecd.org/document/51/0,3343,en_2649_33931_43009971_1_1_1_1,00.html Phillips, J. (2005), Australia’s Migration Program, Parliamentary Library, Department of Parliamentary Services, Parliament of Australia, Canberra. Phillips, J. (2010), Asylum Seekers and Refugees: What Are the Facts?, Parliamentary Library, Department of Parliamentary Services, Parliament of Australia, Canberra. Phillips, J., Klapdor, M., Simon-Davies, J. (2010), Migration to Australia since Federation: A Guide to the Statistics, Parliamentary Library, Department of Parliamentary Services, Parliament of Australia, Canberra. Pietsch, J., Graetz, B. and McAllister, I. (2010), Dimensions of Australian Society, 3rd edition, Palgrave MacMillan, South Yarra. United Nations High Commissioner for Refugees (UNHCR 2010), 2009 Global Trends: Refugees, Asylum-seekers, Returnees, Internally Displaced and Stateless Persons, UNHCR, Geneva, Switzerland. Weston, R. and Wooden, M. (2002), “HILDA Has Arrived!”, Family Matters, 63:66-71. World Bank (2010), World dataBank, available at http://databank.worldbank.org/ddp/home.do.

32 Technical notes

Data sources not differentiate between these groups, and include both permanent migrants (whether citizens or permanent The majority of data used in this report is sourced from residents) and long term temporary migrants (overseas the Australian Bureau of Statistics (ABS), particularly the visitors who are studying or working in Australia for at least 2006 Census of Population and Housing and unit record one year). This definition means, for example, that overseas data from the Household, Income and Labour Dynamics students will generally be included in our analyses (ABS in Australia (HILDA) Survey. Please refer to “Source” at 2004). The inclusion of temporary residents is expected to the bottom of individual tables and figures in order to have little impact on our results as temporary migrants determine what data source has been used. only make up around 1.7 per cent of the overall Australian For the ABS data, we have used data from Census population aged 15 years and above in 2007 (ABS 2008b). TableBuilder, Data Cubes and publications. Data from However, in the “Migrants at Work” section, full-time the 2006 Census are presented based on place of usual students are excluded from the analysis. Full-time students residence and include valid data only, in which the on temporary visas are allowed to work a maximum of only not-stated or inadequately described category is excluded. 20 hours per week under their visa conditions, and thus For HILDA survey data, we have used unit record data from their inclusion in this type of labour market analysis would Wave 8 and Wave 6, with Wave 6 being used specifically tend to inflate the number of part-time migrant workers, for the “Migrants and Wealth” section. We have excluded making it difficult to realistically compare migrants with missing values from the analysis. All HILDA data are non-migrants. weighted using the survey’s population weights. Migration visa The HILDA Project was initiated and is funded by the Australian Government Department of Families, Housing, Types of immigration can be classified according to types Community Services and Indigenous Affairs (FaHCSIA) of migration visa held. While in most of our analysis we and is managed by the Melbourne Institute of Applied do not differentiate between visa types, we do include Economic and Social Research (Melbourne Institute). The some analysis related to visa types, and the migration visas findings and views reported in this paper, however, are discussed in this report cover (i) family; (ii) skill; those of the authors and should not be attributed to either (iii) humanitarian; and (iv) special eligibility. FaHCSIA or the Melbourne Institute. Special eligibility covers former Australian permanent residents and persons who served in the Australian Armed Data coverage and definitions Forces before 1981. Skilled migration visas cover general skilled migration (independent skilled migrants), employer Country of birth nomination, business skills and distinguished talents. We include in our migrant population both those who came to Australia as children and those who arrived as Labour force participation rate adults. The labour force participation rate is the number of people in each age group/migration category working or looking a) Born in Australia: for work divided by the total number of people in that data for people born in Australia, particularly for data category. sourced from the 2006 Census TableBuilder, excludes those who were born in Norfolk Island and the other Unemployment rate Australian external territories. Unemployment is defined as persons aged 15 years and b) Born in the main English speaking countries (“Born in over who were not employed during the reference week, and MESC”): either had actively looked for full-time or part-time work at data for migrants who were born in main English any time in the four weeks up to the end of the reference speaking countries cover Canada, New Zealand, Ireland, week and were available for work in the reference week, the United Kingdom, United States and South Africa. or were waiting to start a new job within four weeks from the end of the reference week and could have started in c) Born in non-main English speaking countries (“Born in the reference week if the job had been available then (ABS: non-MESC”): Topics @ A Glance - Labour, Using Labour Statistics Glossary data for migrants who were born in non-main English 1-2, available at http://www.abs.gov.au/websitedbs/ speaking countries cover the remaining countries not c311215.nsf/20564c23f3183fdaca25672100813ef1/43241c covered by Born in MESC. 378e846e9cca2571e800107073!OpenDocument). Unemployment rates are calculated by dividing the number Immigration status of people who are not in work but who are actively looking Migrants differ in terms of their immigration status (citizen for a job or waiting to start one by the total number of or not, permanent or temporary), but in most of our tables, people in that age/migration category in the labour force. due to issues of data availability and complexity, we do

33 Occupation categories Social participation and subjective wellbeing The Australian and New Zealand Standard Classifications The analysis presented in this section is drawn from the of Occupations (ANZSCO), first edition is used in the 2006 HILDA Wave 8 data. The analysis of social participation Census TableBuilder and HILDA Wave 8 in order to classify covers limited aspects of this concept and is based on the occupations of persons based on skill levels. We have used following information solicited through the survey’s the two digit ANZSCO groups. Skill levels are determined self-completion questionnaire: by a combination of level of formal education and training, C urrently an active member of a sporting/hobby/ experience in related occupation and on-the job training community-based association. (Those who answer a (ABS 2006). ‘yes’ considered an active member.) For example, highly skilled occupations include the C ombined hours/minutes per week - Volunteer/Charity majority of Managers and Professionals (except hospitality, work. (Those who reported any time spent in this retail and service managers) who would normally have category classified as having been involved in volunteer the highest level of educational qualification of a bachelor or charity work.) degree or above. Medium skilled occupations include all two digit occupations from the Technicians and Trade The HILDA survey asked a series of questions covering Workers category, most occupations under Community various aspects of subjective wellbeing, with respondents and Personal Service Workers and some occupations being asked to rate their satisfaction with various aspects under Clerical and Administrative Workers. This group of of their life on a scale of 0 to 10, with 0 being the least occupations is usually commensurate with either having a satisfied and 10 the most satisfied. We use a selected Certificate III or Diploma. Low skilled occupations include set of information on subjective wellbeing covering the some occupations under Community and Personal Service respondents’ feelings related to their employment and Workers, some Clerical and Administrative Workers and community: all two digit occupations under Sales Workers, Machinery Satisfaction - your employment opportunities. Operators and Drivers and Labourers. O verall job satisfaction. Wealth Satisfaction - feeling part of your local community. Components of wealth (including assets and debt) are For the purpose of this analysis, the responses are coded as calculated from Wave 6 of the HILDA survey which is follows: the latest HILDA survey that collected detailed data on 0-3 dissatisfied; 4-6 neither satisfied nor dissatisfied; wealth. We excluded mixed and group households from 7-10 satisfied. our analysis. We first identified the highest earning oldest person of the household as the reference person for the Missing responses are excluded. purpose of this analysis. A household was identified as a migrant household if the reference person or either Data limitations member of a couple were born overseas. If the reference We used the best data available for each section. However, persons and their spouse/partner (if any) were born in in several instances issues of small sample sizes arose, Australia, the households were considered non-migrant particularly for data for which we needed to use the households. Migrant households are further classified into HILDA survey. In order to address these issues, we made long-term settlers and recent migrants based on a 15-year adjustments as necessary so that data has only been cut-off. If either the reference persons or their partners presented for groups that are not affected by small sample came to Australia within the past 15 years, they are sizes. In some cases, we do this by aggregating up data considered as recent migrants; and if the reference persons (for example combining data for men and women, or and their partners (if any) came to live in Australia 15 for MESC and non-MESC migrants), and in other cases years ago or earlier they are considered long-term settlers. we exclude from our analysis those categories for which For those Australian-born persons who have overseas- sample sizes are too small to allow us to be confident of born partners, the migration status of their households is the results (for example, limiting the number of age groups defined on the basis of how long the partners have been we present). It should also be noted that immigrants living in Australia. from non-MESC are slightly under-represented in the The analysis of wealth by migration status is limited to HILDA survey, possibly reflecting some communication households with reference persons aged 35 to 69 years to difficulties with those whose first language is not English avoid small sample sizes. Due to complexities in the data (Weston and Wooden 2002, page 71). In addition, the self- for identifying types of mixed marriages, we do not further completion questionnaire, on which we base our analysis break down migrant households into MESC born and non- of involvement in community activities, was available to MESC born. respondents in English only.

34 This page has been left blank intentionally.

35 This page has been left blank intentionally.

Recent AMP.NATSEM Income and Wealth Reports: Baby Boomers - Doing it for themselves (March 2007) Generation whY? (July 2007) honey I calculated the kids... it’s $537,000 - Australian child costs in 2007 (December 2007) Wherever I lay my debt, that’s my home - Trends in housing affordability and housing stress 1995-1996 to 2005-2006 (March 2008) Advance Australia Fair? - Trends in small area socio-economic inequality 2001-2006 (July 2008) What price the clever country? The cost of tertiary education in Australia (November 2008) She works hard for the money - Australian women and the gender divide (April 2009) healthy, wealthy and wise? - The relationship between health, employment and earnings in Australia (July 2009) don’t stop thinking about tomorrow - The changing face of retirement - the past, the present and the future (November 2009) Saving Tomorrow - The saving and spending patterns of Australians (April 2010) The pursuit of happiness - Life satisfaction in Australia (July 2010) All the above reports are available from www.amp.com.au/ampnatsemreports

This report was written by Riyana Miranti, Binod Nepal and Justine McNamara from NATSEM Pty Limited, and published by AMP. This report contains general information only and although the information was obtained from sources considered to be reliable, the authors, NATSEM and AMP do not guarantee that it is accurate or complete. Therefore, readers should not rely upon this information for any purpose including when making any investment decision. Except where liability under any statute cannot be excluded, NATSEM, AMP and their advisers, employees and officers do not accept any liability (where under contract, tort or otherwise) for any resulting loss or damage suffered by the reader or by any other person. Suggested citation: Miranti, R., Nepal, B., and McNamara, J. (2010), Calling Australia Home: The Characteristics and Contributions of Australian Migrants, AMP.NATSEM Income and Wealth Report, Issue 27, November, Sydney, AMP.

NS2443 11/10